Major events in Caspian countries' oil and gas industry for last week (May 26-31)
Contract for South Caucasus Pipeline's expansion signed in Azerbaijan
The consortium for Shah Deniz gas and condensate field's development in the Azerbaijani sector of the Caspian Sea signed a contract with Saipem/Azfen joint venture to hold construction works for the South Caucasus Pipeline's expansion.
The value of this contract is $735 million. The start of work is scheduled for January 2015 with mechanical completion of the Georgian section expected by the end of 2016 and the Azerbaijan section by the end of 2017.
The scope of work for this contract includes: construction of a 428 km pipeline loop and associated above ground installations in Azerbaijan and Georgia and construction of another pipeline loop, and associated above ground installations in Georgia.
Contract signed on selling Total's share in Shah Deniz project
Turkiye Petrolleri Anonim Ortaklıgı (TPAO) and 'Total Azerbaijan' companies signed a contract in Istanbul on the purchase and sale of Total's 10 percent share in the project of development of Azerbaijan's 'Shah Deniz' offshore gas and condensate field.
Under the contract, the TPAO's share in this project will be increased to 19 percent.
Partners for the development of the Shah Deniz field are: SOCAR with the share of 16.7 percent, British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (9 percent).
SOCAR signs loan agreements as part of constructing refinery in Turkey
The SOCAR Energy Turkey company signed loan agreements with some 23 financial institutions as part of constructing a new Star oil refinery in Turkey.
The agreements' total worth is $3.29 billion, a message posted on the website of Turkey's Public Disclosure Platform said.
As previously reported, some $3 billion out of the total borrowings accounted for export-import banks (Spain, Italy, Japan, the U.S. and South Korea) and 15 commercial foreign banks. Some $500 million will be provided by Turkey's Garanti Bankası.
The message posted on the website of Turkey's Public Disclosure Platform doesn't reflect the names of the banks participating in financing this project.
SOCAR sells 10% share in TANAP
Azerbaijan's State Oil Company (SOCAR) and Turkey's state-owned Botas Pipeline Company signed a contract in Istanbul for the sale of SOCAR's 10 percent share in the Trans Anatolian Pipeline (TANAP) project.
The contract was signed by the Botas Director General, Mehmet Konuk and SOCAR President and TANAP Board's Chairman, Rovnag Abdullayev.
The parties also signed a contract on transportation of gas via TANAP.
Azerbaijan's Energy Minister Natig Aliyev and his Turkish counterpart Taner Yildiz signed a memorandum of understanding on the TANAP project.
The purchase and sale contract will help to increase Botas' share in the project from 20 percent to 30 percent.
Following the completion of the deal with BP and Botas, the shares of SOCAR in this project will stand at 58 percent.
Kazakhstan prepares to implement pilot project on exploration and production of methane
A memorandum of association has been signed between Kazakhstan's KazTransGas JSC and the LeMar CA Inc. group of companies on creating a joint venture (JV), the JSC said.
The aim is to implement the investment project on exploration and production of methane in the Karaganda coal basin of Kazakhstan.
The document was signed by the president of the LeMar CA Inc. group of companies, Leon Popik and the Director General of the KazTransGas JSC, Serik Sultangali.
"This document gives a start to providing the country's northern regions with gas," Sultangali said after the signing ceremony.
New operator to be created for developing Kazakhstan's Kashagan field
A new operator will be created for developing Kazakhstan's Kashagan oil and gas field, the country's Oil and Gas Minister, Uzakbai Karabalin said at a press conference.
"The operating company NCOC is undergoing transformations, and accordingly, a new unified management system is being created. That's to say, a new operator will be created for the Kashagan field. It will include the best specialists of all the contractors of the consortium," Karabalin said.
A new director general of the new operator has already been appointed.
Turkmenistan to sign loan agreement with South Korea and Japan
State Bank for Foreign Economic Affairs of Turkmenistan signed agreements with Japan Bank for International Cooperation and Export-Import Bank of Korea to finance the construction, a source close to the negotiations said.
The amount of loan is reportedly $2.5 billion.
The complex will produce ethylene, high density polyethylene and polyethylene from natural gas produced on the coast of Caspian Sea. The production of the complex is oriented for export to the EU and Asian countries.